Labor questions Telstra regulation plan

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Allowing Telstra to write its own rules for competition
regulation is a frightening prospect for all Australians, Labor
says.

As the government prepares to introduce its Telstra sale bills
to parliament this week, the telecommunications giant reportedly
will be permitted to design the regime under which it has to
provide competitive network access to its rivals.

That would create a less onerous regulatory framework, according
to The Australian Financial Review.

Nationals MPs say there is plenty of time to examine the details
of the sale legislation, but the opposition says the regulation
plan is further evidence the government is rushing to offload its
majority stake in the carrier.

"Clearly with the leadership of Telstra this must be a
frightening prospect for all Australians, particularly in regional
and rural Australia," Labor's telecommunications spokesman Stephen
Conroy told reporters.

Senator Conroy said the proposal for a regulation model should
come in for careful scrutiny by the Nationals.

"What the minister's talking about doing is tabling a bare bones
bill with regulations to come," he said.

"She (Communications Minister Helen Coonan) wants to have the
vote and then supply the details later. I don't think even
(Queensland Nationals Senator) Barnaby Joyce will fall for
that."

"The legislation allows Telstra enormous latitude to write its
own rules and this has got to be of enormous concern," he said.

"This is a company that's claiming it doesn't want to be
providing these services to the bush. It doesn't want to see
equality of service across Australia."

Telstra also reportedly wants to cut its range of products by up
to 80 per cent once it is fully privatised - a move that is likely
to result in job losses.

A report in The Australian newspaper said the company
plans to cut its product lines from 2500 to 500 to curb its $12
billion in annual costs.

The Australian Greens said the Nationals should prevent their
coalition partner from rushing the Telstra sale legislation through
parliament.

Senator Coonan will introduce the legislation enabling the sale
of the remainder of the telco into the Senate this week and wants
to have a vote taken by the end of the September sitting
fortnight.

But Greens senator Bob Brown said the Nationals have a
responsibility to ensure Australians get a say on the issue and
that due parliamentary process is followed.

"You don't rush legislation like this through the parliament,"
Senator Brown told reporters. "The National party has to stand here
for proper parliamentary process and in good faith with their own
constituents."

The Democrats said the prospect of Telstra slashing its range of
services is proof the sale should not go ahead.

"It's just one more example why this government shouldn't be
proceeding with the sale of Telstra and I'm surprised Senator Joyce
hasn't reconsidered his position given the blatant attitude
displayed by Telstra," Democrats Senator Andrew Bartlett said.